The Portland daily press., 1887-12-03

The Investment in bank stocks has increas-
ed from 81 900, 2S5.S3 to So, ,120, 0,065.03.
Besides the above the banks hold
railroad stock amounting to......S b76,63b.S1
Corporati )ns bonds. 998, ,o0o.o4
Corporation stocks...............f 1t5,6I4.oo
Msai Martaasss Il real estate IN Maine
Corporation and Collateral loans... 6,s33 1891
Cash on hand Nov. 1st.............. 9SO29e.95
1t appeared In the appraisment Of the as
sets Of the savings banks in May that their
value was 1925, ,004.92 in excess Of all liabil-
tiles.
NEWPORT SAVINGS BANK.
The receiver of this bank reports that
petition has been filed asking the Court for
authority to sell the remaining assets, In or;
der to close its affairs and declare a final
dividend about January 1st., 1888.
NEW TRUST COMPANIES.
Under charters granted by the legislature
three new trust companies have been organ
lied, viz:
The Eastern Trust and Banking Company,
Bangor.
The Northern Banking Company. Portland.
The Oxford County Loan Association, Norway.
These companies are commencing business
under favorable auspicies. Their officers are
gentlemen well and favorably known to the
people of this State, and their names are a
sufficient guarantee that the affairs Of these
corporations win be honestly and economi-
cally administered.
LOAN AND BUILDING ASSOCIATIONS.
The first building association in this
country was organized more than half cen
tury ago. Since then many associations have
been established and successfully conducted,
but 1t Is only within a comparatively few
years that their real character and universal
value have received general public recogni-
tion.
The first Loan and Building Association
In this State was organized at Richmond In
II nff a
general law ON the subject was passed, but
was revised and essentially modified by the
present legislature. This law, as 1t now
| stands, provides in general, that Loan and
| Building Associations may be organized In
| the manner provided for the organization oi
saving banks and trust and loan association:
| The capital Of every association must con
| sist Of the dues collected OF its share holders
/ and shall not exceed one million dollars
| This capital Is divided into shares, the 'ulti
| mate value" of each being two hundred dol
/ lars. The shares are paid for by monthly
/ installments of one dollar per share unit
| each share reaches its ultimate value" /. e
$500. The shares are issued In series, In such
amounts and at such times as the members
of the association may determine. The funds
of the association are loaned to its share
| holders on satisfactory security, and all
| profits and losses are divided among them
pro rata.
To become shareholder it is only neces-
| sary to take out a certificate of as many
| shares as one may want, but no person shall
| hold more than twenty-five shares. Minors
| may hold shares Dy trustees.
| III shareholder fails to pay his monthly
| dues he Is subject to a fine of not more than
| two per cent a month on each dollar in ar
| rears, and IL he continues in arrears for six
| consecutive months he forfeits his right OF
| membership and his account may be closed
| Shareholders may at any time on months
| notice withdraw the value Of their shares
but in SO doing they subject themselves ql
| to the loss of such part of the profits as the
bylaws may provide, and ~, TO the payment
| of a proportionate part OF any unadJuste6
loss. These two provisions are for the pur
pose of giving greater stability by discour
aging Withdrawals.
/ Two shares of each shareholder shall b.
exempt from attachment and execution.
When a share has reached itsultimate valui
/ count closed. But he may renew his connec
| tion by investing in other shares.
/ 1t Is evident that were there no profits i
| would take 16s years for each share to reael
| its ultimate value, but experience has shown
| that the profits reduce this time 10 10 or l.
| years. This makes profitable investment
i In regard to the investment OF the funds Of
i loan and building associations the law pro
| yides that every borrower shall be share
| holder; each member Is entitled to receive {
loan Of two hundred dollars for every shar'
/ held by him; loans may be made either % BY
giving as security a first mortgage bond OF
| real estate and pledging the shares as collat
| eral, or (0 shares alone may be pledged 10
any amount not exceeding their paid vi
| value. On every loan Is charged an annua
interest OF per cent, payable In month";.
instalments.
The manner of loaning the funds Of th'
| institution Is as follows: Each month thl
directors Of the association meet and bid OF
at auction the money available for loans
| That Is, the borrower. in addition to paying
| duaa and intaraaf n small Der
| centage for the privilege of using the money
Take q practical Illustration. A workman
wishes to build for himself home. He be
comes a member Of a loan and building asso
ciatiop and accumulates his savings till thel
| amount to, say, two hundred dollars. HI
then selects a lot and makes a plan for hi
home. He finds 1t will cost him, when com
pleted, $1,000. He owns six shares in tn
association, on which he has already, pail
$500, and these when fully matured will pa
for his home. He attends a monthly meet
ing Of the directors and bids of loan I
that amount at premium Of two per cent
He pays for his lot by giving a first mortgag
on 1t to the association and transferring hi
shares as a pledge or collateral. He the
contracts with carpenter to build his home
When his house Is framed and boarded h
receives from the association proportional
advance Of his loan, when 1t Is plastere'
another advance, and when 1t Is finished Tn
balance.
He now has home for which he is in deb
81, 200, payable in monthly instalments on hi
shares. His monthly expense, then, will b
as follows:
Dues on six shares at 81 per share. .........S 60
| Interest on 81 200 at per cent. per annum so
Premium of 2 per cent. per annum. 30
| Total. ............................ lao
II this seems an excessive burden, ii mus
be remembered that meanwhile house rent
saved and property is being accumulated.
| As in the case of shareholders, non-b0I
rowers, Ii is evident that were there no profit
it would require 16s years to pay this loan
but as the shares are constantly aceumulai
ing from the dividends, this time Is general
reduced to 10 or II years.
Borrowers are subject to the same regula
tions and conditions as non-bOrrowers. The
may withdraw their loans on application a
any time either % by paying the balance du
| after deducting the value OF the shares hel
| as collateral, or (2) shares may be retaine
by paying the amount due in full.
To guard against financial embarrassment
to any association, 1t Is provided that at n
time shall more than 0ne-half Of the fund
in the treasury be applicable to the demand
Of withdrawing members.
To prevent the perversion Of association
to objects other than for which they are in
tended, 1t Is provided that directors may, q
their discretion, retire unpledged shares q
any time after four years from the date 0
their issue.
At each periodical distribution OF pront
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